Page 68 - BCM July 2024

D.C. WATCH

Navigating the Pending Reforms

Why bowling needs the Tax Relief for American Families and Workers Act.

n today’s rapidly evolving economy, it’s important for calculated approach, potentially sidelining the immediate
I small-business owners to stay abreast of legislative bene ts the current bill could provide.
changes that could impact their operations. One such Currently, Republicans are preparing to enact their own
piece of legislation making its way through Congress, the tax package should they secure control of Congress and
Tax Relief for American Families and Workers Act, holds the White House in the November elections. is strat-
real consequences for industries across egy entails educating newer Members of Congress about
the board, including the bowling and other the budget reconciliation process, which allows tax and
entertainment sectors. Understanding the spending changes to pass with simple majorities, bypass-
progress of this bill is key for strategic plan- ing the need for a 60-vote supermajority in the Senate.
ning as the tax and regulatory landscape Still, the future of such a tax package will depend on which
shifts. party ends up controlling Congress.
BRANDON e act is a comprehensive bill designed e delay of the act creates considerable challenges
PALUMBO to support American families and stimu- for small businesses, notably in the bowling industry.
late business innovation. Key components Central to the bill is the renewal of the R&D tax credit,
include the renewal of the expired research which would allow small businesses to fully deduct their
and development tax credit, which allows businesses to R&D expenses. For bowling centers, this means potential
deduct full R&D expenses from their taxable income — nancial relief through innovations like advanced scoring
critical for small businesses aiming to innovate or improve systems, improved lane materials or new entertainment
their services. technologies. However, the bill’s uncertainty hampers -
Additionally, the bill expands the child tax credit, aim- nancial planning and could escalate operational costs and
ing to increase the bene t annually until it reaches $2,000 limit expansion opportunities, a ecting overall market
in 2025, followed by adjustments for in ation to provide competitiveness. is uncertainty may also discourage
tax relief to working families. However, expanding such investments in technological and facility upgrades, inhib-
programs, thereby increasing federal spending de cits, iting growth and innovation.
has been met with opposition from Senate Republicans, Consider a hypothetical scenario involving a mid-sized
notably the Ranking Member of the Senate Finance Com- bowling center planning to introduce cutting-edge gaming
mittee, Senator Mike Crapo (R-ID). Despite passing the technologies and enhanced customer interaction capabil-
House with strong bipartisan support, the bill is stalled in ity. With the R&D tax credit, this center could a ord these
the Senate due to these concerns, leaving its future uncer- upgrades, potentially transforming customer experiences
tain and many businesses in a state of limbo. and extending their stays. e upgrades would not only
e Tax Relief for American Families and Workers Act boost the center’s market presence but also bene t the
is at the heart of a signi cant partisan divide, with robust local economy by creating jobs and increasing supplier
Democratic support clashing against Republican resis- activity.
tance. Senator Ron Wyden (D-OR), a key proponent of e enactment of the Tax Relief for American Families
the bill and Chair of the Senate Finance Committee, has and Workers Act is vital for the continued growth and
vocally criticized Senate Republicans for their inaction. sustainability of small businesses. Particularly in com-
He accuses them of delaying the bill in hopes of secur- munity-centric industries like bowling, the e ects of this
ing electoral gains in the upcoming November elections, legislation extend beyond business owners to the broader
potentially to pass their own version of tax legislation. community.
Senate Majority Leader Chuck Schumer (D-NY) has stated Bowling center owners and related stakeholders must
he would put the tax package on the Senate oor if it had actively engage with their congressional representatives
enough votes to pass. to advocate for the rapid passage of this bill, ensuring that
Republican senators are urging changes to the expan- small businesses can thrive in today’s challenging eco-
sion of the Child Tax Credit or at least a chance to get votes nomic climate. Let’s champion a future that supports a
on amendments. However, Senator Crapo has ended talks legislative environment in which small businesses remain
with Senator Wyden. pivotal to America’s economic success.
Since then, Senate Republicans led by Senator Crapo
have formed working groups as a strategic move to Brandon Palumbo is a senior associate with Michael Best
prepare for the vast array of tax provisions set to expire Strategies. BPAA works with Michael Best Strategies on
in 2025, known internally as the “tax cli .” is is a more federal and state advocacy.

66 • BCM • JULY 2024 www.bcmmag.com

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